According to the old saying, time is more valuable than money. It's not worth investing if you miss the best opportunity. To make informed decisions, it is essential to understand the timings of the share market. It is easy to recall every detail of this timing with a few simple steps. Similar timing is followed by India's two largest stock exchanges, the Bombay stock Exchange (BSE), and the National Stock exchange (NSE). Other minor stock exchanges located in different cities follow the same pattern. Saturdays and Sundays are off limits for the share market. The market is open for business from 9.15 to 3.30pm every day, with no breaks for lunch or tea.
This guide will show you how to convert your physical shares into demat.
What is share market timing? This is the time frame that indicates how long the stock market will remain operational. The Indian stock exchange is divided into three sessions each day: pre-opening and normal sessions, as well as post-closing and post-closing.
Here is a quick overview of a typical day on the stock market.
It runs from 9.15 a.m. to 3.30 p.m. This is the most popular time for trading activities. This session follows the bilateral matching system. This means that the transaction is concluded when both the buying and selling prices are equal.
The session begins at 9.00 AM and ends at 9.15 AM. Although it may not seem like it, this short window is crucial in controlling volatility. You can also break this session into three separate sessions:
This session runs from 9 am to 9.08 am. This is the time to place orders to purchase or sell stocks. During this time, the investor can modify any order that was already placed.
Matching orders takes place in the four-minute period between 9.08 and 9:12. When are the orders considered compatible? This is when the maximum purchase order price is equal or greater than the minimum sell order price.
Buffer The buffer is the remaining time between 9.12 and 9.15. This allows for smooth transitions from the pre-opening session into the normal session.
The traders often don't use these 15 minutes. This makes the market volatile.
The market closes at 3 :3 0 pm after the normal session. The closing stock prices will be determined in the next 10 minutes. The closing price is the weighted average of all prices between 3:00 and 3:30 pm.
This session lasts from 3.40pm until 4.00pm. Traders may place buy and sell orders at any time during this session.
The pre-opening session and the post-closing session are only applicable to cash trading.
Commodity trading (MCX), takes place between 10 and 11.30 a.m. Normal trading for the agri-community NCDEX takes place between 10am and 5pm. These cases are exempt from weekend trading, which is Saturdays and Sundays.
Trade orders can be placed even after the close time. However, orders remain pending. These orders are covered by AMO--i.e. After the market order.
The Indian stock market also has a Diwali trading session. This is known as Mahurat Trading. It is usually held a few days prior to the festival. It is usually held in the evening.
Recently, the Securities and Exchange Board of India(SEBI) announced that stock exchanges can extend their session for trading equity derivatives up to 11.55 pm.
Timing is crucial, whether you're a day trader who trades in one day or a position trader who holds capital for a longer period. The timing of your order, from placing it to buying or selling stock, is crucial.